Dave Mosley has been the CEO of Seagate Technology plc (NASDAQ:STX) since 2017, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
How Does Total Compensation For Dave Mosley Compare With Other Companies In The Industry?
According to our data, Seagate Technology plc has a market capitalization of US$16b, and paid its CEO total annual compensation worth US$12m over the year to July 2020. Notably, that's an increase of 13% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.1m.
For comparison, other companies in the industry with market capitalizations above US$8.0b, reported a median total CEO compensation of US$12m. From this we gather that Dave Mosley is paid around the median for CEOs in the industry. Moreover, Dave Mosley also holds US$31m worth of Seagate Technology stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Speaking on an industry level, nearly 26% of total compensation represents salary, while the remainder of 74% is other remuneration. Seagate Technology pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
Seagate Technology plc's Growth
Over the past three years, Seagate Technology plc has seen its earnings per share (EPS) grow by 14% per year. It achieved revenue growth of 2.6% over the last year.
This demonstrates that the company has been improving recently and is good news for the shareholders. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has Seagate Technology plc Been A Good Investment?
We think that the total shareholder return of 76%, over three years, would leave most Seagate Technology plc shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
As we touched on above, Seagate Technology plc is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Few would be critical of the leadership, since returns have been juicy and EPS are moving in the right direction. Although the pay is close to the industry median, overall performance is excellent, so we don't think the CEO is paid too generously. In fact, shareholders might even think the CEO deserves a raise as a reward due to the fantastic returns generated.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 3 warning signs for Seagate Technology that investors should think about before committing capital to this stock.
Switching gears from Seagate Technology, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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